Notes to the Financial Statements For the financial year ended 31 December 2025 27. COMMITMENTS (a) Commitments In October 2023, the Group entered into a Deed of Income Support in connection with the divestment of a property where it will provide net property income support (“NPI Support”) to the purchaser of the property. The NPI Support is for a period of 36 months from 16 October 2023 and has an upper limit of $8.6 million per annum. Based on the Manager’s estimate, the remaining NPI Support to be paid to the purchaser as at the reporting date is approximately $1.0 million (31 December 2024: $2.9 million). (b) Capital commitments At the reporting date, the Group had the following capital commitments: • $5.3 million (2024: $9.8 million) of capital commitments in respect of redevelopment works, asset enhancement initiatives and capital expenditure for investment properties that had been authorised and contracted for but not provided for in the consolidated financial statements. These projects are targeted to complete in 2026. • A$7.05 million (2024: A$7.05 million) of capital commitments in respect of the 10.0% interest in EALP, which may be called upon by EALP to finance its activities. • US$70.0 million (2024: US$70.0 million) of capital commitments in respect of the subscription agreement entered into with Japan Income Fund, SCSp, which may be called upon by its managing partner (associé gérant commandité) to finance the activities of Japan Income Fund. (c) Guarantees • The Trust has provided unsecured corporate guarantees to banks in respect of the interest rate swaps contracts entered into by certain subsidiaries with total notional amount of $137.5 million (2024: $254.3 million). • The Trust has provided unsecured corporate guarantees of $9.1 million (2024: $8.8 million) to a bank in respect of bank guarantees issued on behalf of a subsidiary. 28. CONTINGENT LIABILITY On 27 February 2025, HSBC Institutional Trust Services (Singapore) Limited in its capacity as retired trustee of ALOG Trust, LOGOS Property Management Pte. Ltd. and ESR Property Services Pte. Ltd., as the former and current property managers of ALOG Trust respectively, were served with a claim from the tenant of a property in Singapore for damages amounting to approximately $27.4 million in relation to losses suffered arising from damages in its rented premises. Based on the advice received from the Group’s external legal counsel, the Manager has determined that as at the date of these financial statements, no provision for the claim is required as the Manager does not consider it probable that there will be any significant outflow of resources arising from the claim. 201 ESR-REIT ANNUAL REPORT 2025
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